NewBuy part-exchange could free up more homes for buyers
Builders offering the NewBuy scheme will now offer to buy a customer’s existing home before selling them a newly built one
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Homeowners hoping to take their next step on the property ladder will now be able to trade in their old property for a new-built home, Housing Minister Mark Prisk said today.
Launching ‘NewBuy part exchange’, the minister said this new measure would help free up the housing market for aspiring first-time buyers as well as ‘second-steppers’ as more properties are freed up to buy.
From today, builders offering the scheme will now offer to buy a customer’s existing property in advance of selling them a newly built home, alongside their 5 per cent deposit.
The Government hopes that this move will address a key issue in the housing market, where existing homeowners are struggling to sell their current property to move up the chain. NewBuy part-exchange will be available for the first six months of 2013, with the possibility of this being extended subject to demand.
The Home Builders Federation reports that there have been 3,000 reservations made through the scheme which offers the chance to buy a newly built home with a much smaller deposit than is normally required.
Mark Prisk said: “The NewBuy scheme is unique in the industry in that it not only supports aspiring homeowners, but also those looking to move up the property ladder. The part-exchange offer to second-steppers will help them make that move, getting the housing market moving and ensuring those looking to move to a bigger home more suited to their needs can do so.”
Stewart Baseley, Executive Chairman of the Home Builders Federation, said: “We know that there is a huge pent-up demand for home ownership after years when large deposit requirements have prevented many people from buying their first home or trading up to a larger home.
“NewBuy is now a real option for those who thought they couldn’t get on to the property ladder. Allowing people to part-exchange their existing homes and buy a new one using NewBuy will also be a huge boost for those families stuck in their existing homes, unable to sell and without the required deposit to move.”
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments